On December 21, 2017, the CFPB (as well as the OCC and FDIC) released a statement announcing the Bureau's intentions for enforcement with respect to errors for data collected in 2018 and reported in 2019 under the Home Mortgage Disclosure Act (HMDA). Per the release, "the Bureau does not intend to require data resubmission unless data errors are material or assess penalties with respect to errors for data collected in 2018 ad reported in 2019."

This news is timely and significant because 2018 marks the first year where financial institutions must collect and report data in accordance with the changes to Regulation C which are a result of the Dodd Frank Act.

So how does this apply to financial institutions?

We do not believe that this guidance should have an effect on financial institutions. While some may be tempted to provide less resources to HMDA due to the consequences, we recommend that banks and credit unions continue to take an "all hands on deck" approach to implementing the new HMDA changes. As the rules are extremely complex, it will be difficult for many financial institutions to correctly implement. Therefore, the agency guidance should be a welcome "curve" to the future HMDA test all HMDA reporters must take.

The full CFPB release can be found here.

Adam Witmer

Adam Witmer is a speaker, author, and founder of the Compliance Cohort. Adam has taught hundreds of seminars and training sessions to thousands of bankers throughout the United States and teaches on all areas of regulatory compliance. Adam has written five e-books that he never published, hit a grizzly bear while driving in a National Park, and is an award winning photographer and musician (though he no longer takes photos nor plays any instruments). In his spare time, Adam can be found kayaking on the lake, doing taekwondo with his kids, working on his (project) house, or spending time with his family.

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